Valvoline Inc. reported $390.00 million in net revenue for the fiscal fourth quarter ended Sept. 30, 2023 — an increase of 16.3% compared to a year ago. System-wide store sales grew 15.0% to $738.30 million.
System-wide same-store sales rose 10.0% on top of 9.2% growth a year ago for a two-year stack of +19.2%. Company-operated same-store sales increased 9.1% on top of 8.5% growth a year ago for a two-year stack of +17.6%. Franchised same-store sales rose 10.8% on top of 9.8% growth a year ago for a two-year stack of +20.6%.
Approximately two-thirds of the system-wide same-store sales growth came from ticket with one-third coming from transaction growth.
CFO Mary Meixelsperger told analysts on Valvoline’s Nov. 9 earnings call that ticket growth came largely from pricing, with meaningful contributions from non-oil change revenue service penetration as well as premiumization. On the transaction side, Meixelsperger said growth in customers was the largest contributor.
Valvoline’s gross profit grew 14.9% to $148.30 million in the fiscal fourth quarter.
Adjusted EBITDA rose 24.8% to $109.20 million.
Valvoline ended the quarter with 1,852 shops system-wide — an 8% increase over a year ago. That breaks down as 876 company-operated shops (up 22%) and 976 franchised shops (up 26%).
Looking ahead, management expects 6% to 9% system-wide same-store sales growth in fiscal 2024. Net revenue is forecast to come in between $1.60 billion and $1.70 billion. System-wide shop additions are expected to be between 140 and 170, with 55 to 70 coming from franchisees.